Aave reopens frozen markets but blocks new collateral loans

Emergency cap cuts at Aave preserve borrowing room to return to pre-Binance hot-wallet levels, even as LlamaRisk estimates they remove roughly $3.8 billion of unused capacity. In an Oct. 30 update , risk service provider LlamaRisk said it had executed lower borrowing ceilings and temporary interest-rate changes on Aave V3 and V4. GHO borrow-cap cuts on the Core and Prime markets remained queued. The measures follow an Oct. 29 emergency freeze, after LlamaRisk’s initial assessment described the exploiter’s Aave position as overcollateralized and subject to normal liquidation.

Source: CryptoSlate